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NEW YORK (Reuters) – Shares of Cleveland-Cliffs Inc. have struggled with rivals Vale SA after three Vale dams were broken at an iron ore mine in Brazil last month, the newspaper said. Barron's latest issue.
The incident marked Vale's second fatal accident in the region in three years, causing the company to suspend dividend payments, Barron's said.
In addition, a court ordered Vale to halt work on its Brucutu mine and its operating license on the property was revoked. The company also invoked the force majeure clause in some of its contracts because of a drop in production, noted Barron's.
Vale's problems were helped by Cleveland-Cliffs shares, Barron's said. After the release of its fourth quarter results, Cleveland-Cliffs shares rose 8.5% to $ 11.83 on Friday.
The company posted earnings of $ 2.03 per share in the quarter on sales of $ 696.3 million. At a teleconference, he said that the impact of Vale's events has not yet been quantified.
Macquarie badyst David Lipschitz has reiterated Cleveland-Cliffs' "overperform" rating and raised its price target of $ 2 to $ 13 as a result of the earnings report, Barron's said.
Reportage by Stephanie Kelly; Edited by Bill Berkrot
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